Hanoi: Rider hailer Uber Technologies has merged its Vietnam operations with Singapore based company Grab from Monday.
According to Xinhua News Agency, many Vietnamese Uber drivers had already started to work for Grab. Uber, the cab hailing app reported nearly a month ago it would be selling its South East Asian business to Grab. The deal would mark the exit of Uber from eight countries- Philippines, Malaysia, Vietnam, Myanmar, Cambodia, Singapore, Indonesia and Thailand.
Meanwhile, Indonesia based Go-Jek was also preparing to enter the Vietnamese market, competing with Grab, the daily said. Vietnam has a population of nearly 95 million, of which around 46 million own motorbikes.
Hanoi currently has 19,265 taxis and some 30,000 cars which operate similar to taxis under various brands. The respective figures in Ho Chi Minh City are 11,060 and around 33,000.
The deal with Grab, estimated at $6 billion in valuation, is expected to save $ 200 million in operations.
Dara Khosrowshahi, Uber's Chief was quoted in reports claiming that Uber did not find the logic in battling against too many competitors. The exercise to reduce losses could stem from Uber's plans for an IPO in 2019. Uber, according to estimates, has lost close to $4.5 billion in FY19 alone. This data may be limited to US and European markets.